Sarasota County, Florida Notes to Financial Statements September 30, 2022 The 1996 Internal Revenue Service regulations require that all amounts of deferred compensation, all property and rights purchased with such amounts, and all income attributable to such amounts, property or rights shall be held for the exclusive benefit of plan participants and their beneficiaries. The County amended its plans for this provision and was in full compliance by the required January 1, 1999 implementation date. GASB Statement No. 32 guidance requires for reporting periods beginning after December 31, 1998 alternative financial reporting standards for entities meeting the new requirements of IRC Section 457. The alternative reporting requirement became relevant to the County's fiscal year 2000 financial statements. Under GASB Statement No. 32, the County is no longer required to report its Section 457 plan subsequent to fiscal year 1999. There were no additional financial reporting requirements after the implementation of GASB Statement No. 97. NOTE 12. POST-EMPLOYMENT BENEFITS (OTHER THAN PENSIONS) Accounting and Financial Reporting by Employers for Post-Employment Benefits Other Than Pensions, requires governments to account for other post-employment benefits (OPEB) on an accrual basis, rather than on a pay-asyou-go basis. The effect is the recognition of an actuarially determined expense on the Statement of Activities when a future retiree earns their post-employment benefits, rather than when they use their post-employment benefit. The post-employment benefit liability is recognized on the Statement of Net Position over time. GASB Statement 74, Financial Reporting for Post-Employment Benefit Plans Other Than Pension Plans establishes financial reporting standards for state and local governmental OPEB plans - defined benefit OPEB plans and defined contribution OPEB plans - that are administered through trusts or equivalent arrangements (hereafter jointly referred to as trusts) in which: a. Contributions from employers to the OPEB plan and earnings on those contributions are irrevocable. b. OPEB plan assets are dedicated to providing OPEB to plan members in accordance with the benefit terms. c. OPEB plan assets are legally protected from the creditors of employers, non-employer contributing entities, and the OPEB plan administrator. Sarasota County’s Retiree Healthcare Plan description Sarasota County’s Retiree Health Care Plan (Plan) is a single-employer defined benefit post-employment heath care plan (OPEB) that covers eligible retired employees. The Plan, which is administered by the County, allows employees who retire and meet retirement eligibility requirements under one of the County’s retirement plans to continue medical coverage as a participant in the County’s plan. Pursuant to the provisions of Section 112.0801 Florida Statutes, any employee who retires and immediately begins receiving benefits from the Florida Retirement System (FRS) has the option of paying premiums to continue in the County’s healthcare plan at the same cost that is applicable to active employees. The retiree’s cost is partially offset by a subsidy from the Florida Retirement System equal to $5 per month for each year of creditable service, with a minimum of $30, and a maximum of $150 per month. Coverage can be continued for the spouse after the death of the retiree, at a retiree’s single person subsidized rate, if elected. The County has no formal funding policy and did not contribute to the fund during the 2022 fiscal year. Benefits are established by the County’s Board of County Commissioners. The Board of County Commissioners may change or amend funding provisions and negotiate to modify the OPEB. Transfers and investment changes must be made in accordance with plan provisions. The County does not issue a stand-alone financial report specific to the OPEB plan. The County’s plan is open to new entrants. Sheriff’s Retiree Health Care Plan description Sheriff’s Retiree Health Care Plan (Sheriff’s Plan) is a single-employer defined benefit postemployment health care plan (OPEB) that covers eligible retired employees. The Sheriff provides post-employment health care benefits in accordance with Florida Statutes Section 112.0801 to all employees who retire from the Sheriff’s office. The Sheriff is required to provide health care coverage at cost to all retirees but does not have to pay any portion of the 148
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